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Vfednesday, December 27, 1950

Federal Reserve Bank of Dallas

Approximately 71 percent of tue peanut growers who -voted in the peanut
referendum on December 14 favored marketing ouotas for the. peanut crops of 1951,
I95'2-;arid1953, acco1"'di1tg topreliminary talmlat:i.ons announced ·by the USDA. The
su~ptantie.lly compJete returns received from 1( states in which the referendum was
he.ld show that 48, 790 producers favored quotas while 20, 120 voted a~ainst quotas
Tabulations of results of the referendum by states shovr that.68.1 percent
of the farmers voting in Texas favored quotGs; in Oklahoma the figure ·was 59 .• 3 p~r­
cent. 7 of the 9 farmers voting in Louisiana and all of the 3 voting in Arizona
favored quotas. On the other hand, three-fourths of the New Mexico g-rovrers voted
against controls~
Final estimates of peanut production in Texas in 19SO show a crop of 331
million pounds--almost equal last year 1 s large c:cop, despite reduced In
OkJ.ahoma 117 million pounds were produced, up 3 million pounds over 1949 due to
increased acreage.
The su:;ply of peanuts in commercial positions in the US at the end of ovember Fas the lar 5 est on record, according to the DAE . This supply, which ex('ludes
st.ocks on farms and holdings of shelled oil stock peanuts, amounted to 1, 31~ million
pounds on a farmersr stock equivalent basis, vs. 907 · mi1lion pounds a year ago. The
increased supply of farmers' stock peanuts resulted largely from a decline in milling operations this season. A total of 404 million pounds.of farmers' ·stock peanuts
had been milJed this season through November JO, compa1'.'ed with 658 million pounds
milled to the end of lJovcmber last year. Cleaning ar:d shelling operations thus far
this season· accounted for 388 million. pounds, vs. 656 i:iillion pounds in the same
period a y~a~.earlier.

The cotton market has remained stable for the past 2 1 reeks. On
Tuesday, -Decenber 26, Middling 1)/16-inch c0tton in the 10 designated spot markets
averaged 43. 28 cents per pound, compared y\·i th 43. 29 u1ts a we8k earlier.
Domestic ir.ill_ <;?Onsunption per i:rorking day increased in November from the
preceding month rs level, but th0 daily rate vms the fourth highest N ovembcr average
on record. Domestic mills consumed c:. total slightly in excess of one million bales
in the 5-week period ended December 2, 1950. During the first 4 months of the current season about 3.6 million bales were consumed, vs. 2.9 million in the same
months of 1949.
Hilled stocks of cotton increased sharply dur2.n; November and at the end
of the month· totaled o~~ 1.8 million 1.Jales, vs. LS million a month earlier.
Cotton ginned in Texas through DeceEber l? amounted ~o 2,733,000 bales,
almost 95 percent of the ~rop, vs. 87 percent to the same date n year ag •
CottonsPed prices 1.n Texas J.ast ;.~;eek. avcrar~ed ~j)l05 . 90 per ton, omparect
with $106. 70 the previo .1s ·reek. In Oklahoma the average price ras t-lOh . 8 , vs.
$102 .20 a ~eek earlier ,


The official' 'forecast of the Texas v:hr=at crop for harvest next summer is
set br the USDA at 57,744,0<JO bushels, or more th2n t ..iice he 1950 harvest. Horever, it is only about half t:1e extraordinary lIIlper crops of 19h7 and 1949 . Tl e
Texas acreage for the current . eason, a 1 of whicl is planted, is 6,L.16, 00 acrcw ~

Number 52

Wednesday, December 27,·1950
Page 2

The USDA points out that whether the Texas wheat crop can come up to expectations depends heavily, as usual, on the vreather. This fa11, when it should
have been sending down roots and getting readY:-for spring growth it suffered from
drought and severe early freeze. wheat prices on the Fort Worth Grain and Cotton Exchange have made
little net change for- thepast week. ·· On Tuesday, December ~6, No. 1 hard wheat sold
for a top price of $2 .61i-l/4 per bushel--about the same as a week earlier but i8-l/2
cents over a month ago.
Current wheat supplies, says the BAE, are adequate to take care of all
domestic requirements;-provid~for large scale exports, and leave a substantial
carry-over at the end of the marketing year. It is expected that 1950-crop wheat
placed under loan before the program expires at the end of January will total less
than 200 milliOrlbushels, vs. 383 million bushels for the 19!+9 crop.
G R. A I N S
· Prices of other grains on the Fort Worth Grain and Cotton continue
to reach new high levels for the year. On Tuesday, December 26, No. 2 barley brought
$1. 71 per bushel,. vs. ~ l. 68 a week earlier and ~)l. 54 a month ago.
No. 2 white oats at $1.16-1/4 per bushel were fractionally below a week
earlier but still 7 ce~over a month ago. Noo 2 yellovr corn at ~ l.87-3/4 and No.
2 white corn at z~ 2.25-l/4 per bushel were 14 cents ancr-23 cents, respectively, over
a month earlier.
No. 2 yellow milo (sorghum grain) sold for ~~ 2.5,8 per cwt., or 1 cent over
a week earlier and 30 cents above the same date last month.
Texas and Louisiana rice markets aY'e holding firm but trading has been slow
for the past t wo weeks, reflectin ~ the usual holiday dullness. Last week's quotations for milled rice at 1'exas and Louisiana common points: Zeni th, ~W. 75; Blue
Bonnet, ~ni.oo; and Patna, ~ 11.25 per cwt.

Livestock prices on the Fort Vforth market have· risen .during the past week,
with some c:lasses r~aching new "highs" for the year • . On Tuesday of this week,
slaughter heifers brought ·~ 31.00, cows sold as high as :;~ 24.00, and calves rose to
~~ 31.50 per-cwt. Slaughter steers held at ~t 31. 50, while fe'eder . and stocker steers
remained at 331.00.
Hog prices reached $20.50 on Tuesday--up ~> l.00 from a week earlier and
~ 2.00 over""""t"Wo we eks ago9
The 1950 U. S. pir, crop totaled 100.7 million head, an increase of 5 percent
over last year, according to the BAE. This is exceeded only by the crops of 1942 and
1%3. The 1950 spring pig crop was up 3 percent, while the fall crop was up 9 percent.
Farmers' reverts on breeding intentions indicate 9,920,000 sows to farrow
in the spring of 1951--an increase of 4 percent over last spring.
W 0 0 L
Good 12-months Texas v-ro-o~l~w-a-s~c-o_n_t~r-a_c_t~e-d.........,l~a-s...,..t week 'at prices ranging up to
$1.12 per pound, grease basis. Contracting of Texas mohair saw prices rise to $1.26
for adult and $1.56 per nound for kid mohair. Some contracts have been reported sold
ahead to mills at ~~l.30 for adult and S?l.55 for kid mohair.
W. M. Pritchett
Agricultural Economist